📝 Description
Taxation is governed by the law "On Virtual Assets" (Law No. 2074-IX) and the corresponding amendments to the Ukrainian Tax Code, harmonized with European MiCA standards.
Ukraine has become one of the clearest countries in the world regarding digital assets.
Category | Tax Treatment |
Global Tax Rate | 23% (18% Income Tax + 5% Military Tax) |
Crypto-to-Crypto Swaps | Non-taxable |
Crypto-to-Fiat Exchanges | Taxable |
Gain Calculation | FIFO Method (First-In, First-Out) |
Exemption Threshold | None |
Reporting Deadline | May 1st of the following year |
📂 Taxable vs. Non-Taxable Events
Understanding when you trigger a tax liability is crucial to avoid paying too early.
✅ What is Taxable (23% on gains)
Selling crypto for Fiat: Selling Bitcoin for Hryvnias (UAH), Dollars (USD), or Euros (EUR).
Purchasing goods or services: Using your crypto card to pay for coffee, rent, or a car. The administration considers this a crypto sale followed by a purchase.
Receiving income (Staking, Mining, Salary): These tokens are taxed at their market value at the time of receipt.
❌ What is NOT Taxable
Crypto-to-Crypto Swaps: Exchanging ETH for SOL or BTC for USDT does not trigger tax. Taxation is deferred until exit into the "real" world (Fiat).
Transfer between wallets: Moving your funds from Binance to your Ledger is not a sale.
Holding (HODL): As long as you don't sell, you owe nothing, even if your portfolio value doubles.
📂 Crypto-to-Crypto Operations (Trading)
Ukraine applies a tax deferral principle. This means exchanging one cryptocurrency for another (for example, Bitcoin for Ethereum, or into a stablecoin like USDT) is not a taxable event. Tax is only triggered upon conversion into a traditional currency.
How to set up these operations on Waltio?
To ensure comprehensive tracking of your transactions, Waltio considers all exchange operations taxable by default.
Your Action: To ensure your report reflects the exemption provided by Ukrainian law, you must go to your Waltio dashboard and manually change the status of each Crypto-to-Crypto exchange operation to Non-taxable. The software will then correctly carry over your acquisition price until the final sale.
📂 Passive Income (staking, mining, airdrops, play2earn gains…)
In Ukraine, income generated passively from your cryptocurrencies is considered ordinary income and falls within the scope of taxation.
How are they managed on Waltio?
To simplify accounting tracking, Waltio applies a specific methodology by default:
These incomes are marked as non-taxable upon receipt.
The software assigns them an acquisition value of €0.
Practical consequence: Taxation is deferred. It is only when you decide to sell these tokens (from staking, mining, or airdrops) for a fiat currency that the operation becomes taxable. The total disposal amount will then be considered a capital gain, which balances the calculation.
💡 Want to report upon receipt?
If you prefer to declare these incomes at the exact moment you receive them, a manual process will be necessary on Waltio. To do this, you must individually modify each passive gain transaction to enter its acquisition price (i.e., the market price of the token on the exact day of receipt). This way, the acquisition value will no longer be €0, and the operation will be recorded as immediate income.
💡 Summary Table by Operation
Operation | Taxable? | How to calculate? |
Trading (BTC/ETH) | No | Cost basis deferral. |
Sale (BTC/FIAT) | Yes | (Sale Price) - (Purchase Price) |
Staking / Yield | Yes | Total value of the token at receipt. |
Airdrops | Yes | Value at the time of receipt (considered a gift). |
Losses (Capital Losses) | - | Deductible from gains of the same year. |
📂 How to calculate your profits (FIFO Method)
Ukraine mandates the FIFO (First-In, First-Out) method for tracking token stocks. This means the first tokens you bought are considered the first ones sold.
Example:
Purchase of 1 BTC in 2024 at €30,000.
Purchase of 1 BTC in 2025 at €50,000.
Sale of 1 BTC in 2026 at €60,000.
According to FIFO, you use the 2024 purchase price (€30,000). Your taxable profit is €30,000.
📂 Reporting and Compliance
Ukraine has adopted OECD standards (CARF) for the automatic exchange of information. This means that exchange platforms communicate your balances directly to the tax authorities.
Required Documents:
Full transaction history (CSV files or API).
Proof of purchase prices (bank statements).
Details of transaction fees ("Gas" network fees and exchange fees are deductible from profit).
📂 Tax Calendar:
Tax Period: From January 1st to December 31st.
Reporting: Must be submitted before May 1st.
Payment: Must be made before August 1st.
⚠️ Losses and Capital Losses
If you have made poor trades and are in a loss position, you can use these losses to reduce your taxable gains for the same year. If your losses exceed your gains, you can carry over the excess to the following year (for up to 5 years) to reduce your future taxes.
Tip: We recommend that users use a tracking tool like ours to generate a tax report compliant with the Ukrainian format, as manual FIFO calculation across hundreds of transactions is a source of frequent errors and tax audits.
Disclaimer: This guide is provided for purely informational and educational purposes. Legislation surrounding digital assets is sometimes subject to interpretation and can evolve very quickly. Waltio does not provide tax or legal advice. We strongly recommend consulting a tax lawyer or a certified professional in Ukraine to validate your personal situation.